FSC Techsignal Buy-Sell Cycles Network
Custom Signals may be generated for any asset for which there is a time series. We are currently only offering buy-sell signals on end-of-day markets. Our client names the asset and sets the stops. A current sample trade history for each cycle is made available for a given asset to educate the client to the cycle's characteristic profit and loss, as well as average drawdown, average stop-loss, and average trade time dependent on prevailing market conditions at the turn of the cycle.
| Signal | Entry Date | Price | Exit Date | Price | Profit | Drawdown | Length | Cumulative |
| Buy | 4/16/2003 | 324.6 | 2/13/2004 | 412.8 | 88.2 | 0 | 192 | 88.2 |
| Sell | 2/13/2004 | 412.8 | 5/17/2004 | 380.5 | 32.3 | 14.5 | 59 | 120.5 |
| Buy | 5/17/2004 | 380.5 | 12/22/2004 | 443.3 | 62.8 | 0 | 139 | 183.3 |
| Sell | 12/22/2004 | 443.3 | 5/19/2005 | 421.5 | 21.8 | 2 | 94 | 205.1 |
| Buy | 5/19/2005 | 421.5 | 5/23/2006 | 659.5 | 238 | 0 | 234 | 443.1 |
| Sell | 5/23/2006 | 659.5 | 10/6/2006 | 574.2 | 85.3 | 14 | 86 | 528.4 |
| Buy | 10/6/2006 | 574.2 | 3/5/2008 | 966 | 391.8 | 0 | 328 | 920.2 |
| Sell | 3/5/2008 | 966 | 5/15/2008 | 866 | 100 | 0 | 45 | 1020.2 |
| Buy | 5/15/2008 | 866 | 8/1/2008 | 913 | 47 | 0 | 49 | 1067.2 |
| Buy | 8/14/2008 | 812 | 8/15/2008 | 788.4 | -23.6 | 23.6 | 1 | 1043.6 |
| Buy | 9/23/2008 | 904 | Open | 714.7 | 189.3 | 0 | 1232.9 |
Stock Market Cycles and Inversions
Cycles are live, real-time, signals or rhythms in the life of man as well as in the stock market. They are dynamic events and are definitley not static.
The Foundation uses mathematical representations of these live cycles. The model is good but not perfect. We use a sine wave to model cycles.
Sine waves do a fairly good job of representing the living dynamic cycles in real life and in the stock market.
But about 15% of the time the signal inverts. The concept of inversion is simple. A cycle will project a peak at precisely the same time as the market bottoms. The image is 100% in the wrong direction, and looks rather like a perfect mirror image as well.
Picture of a recent Down Jones inversion of the 56 day cycle.
The key is that the timing must be the same to call it an inversion. The cause is the difference between the static sine wave model and the dynamic live cycle.
The static model assumes that cycles move from lows to highs and lows again ad infinitum. The reality is that living cycles follow this model about 85% of the time. But markets sometimes move from high to high and then to low or low to low to high. This happens on the average about 15% of the time in all markets.
The ultimate high or low will fall on the cycle turn but the intervening "upside-down" turns are called inversions.
That is the bad news, but the good news there are known reliable techniques for us to determine when a cycle inverts within about 10% of the length of the cycle.
One of the most important cycles in the stock market is the 10-week cycle or 50-market days. That means the inversion can be learned in the first five days after the cycle turn.
We use the following techniques to indicate inversions:
• Moving Averages
• Future Lines of Demarcations
• Overbought & Oversold Oscillators
• Regression Channels
• Curvilinear Envelopes
The software automatically adjusts for these events with the corrected signal.